| Expansion Value | ₹202 CrTotal Capex |
|---|---|
| Market Cap | ₹1,523.3 CrMetals & Mining |
| P/E TTM | 10.11xIndustry 34.44x |
| 1-Year Return | 51.86%Stock Performance |
| Execution period | Phased completion by March 2028 |
| Deal value | ₹202 Cr |
| Share of market cap | 13.3% |
| Share of annual revenue | 26.8% |
Key highlights
- Investment of ₹124 crore allocated to increase SS Hose & Braiding capacity from 20 million to 30 million meters per annum
- Liquid Cooling SFN Skid Assembly capacity to double from 15,000 to 30,000 pieces per annum with a ₹78 crore outlay
- New state-of-the-art assembly plant will be established to convert 70% to 75% of hoses and braids into finished assemblies
- Total project cost of ₹202 crore to be financed through a combination of internal accruals, equity, and bridge loan financing
- Phased completion of the entire expansion program is scheduled for conclusion by March 2028
Scaling Infrastructure for High-Growth Segments
The board of Aeroflex Industries Limited has finalized plans to significantly increase its manufacturing footprint. The primary focus is the SS Hose & Braiding Division, which recently completed an enhancement to 20 million meters and is now slated to reach 30 million meters annually. Simultaneously, the Liquid Cooling SFN Skid Assemblies Division, crucial for data center cooling applications, will see its capacity grow from 15,000 to 30,000 pieces per annum.
This expansion is designed to facilitate the conversion of a majority of the company's raw hose production into higher-margin assemblies, supported by a new state-of-the-art plant.
Projected Timelines and Financial Structure
- Phased completion of all expansion projects targeted by March 2028
- SS Hose capacity addition requires an estimated investment of ₹124 crore
- Liquid cooling capacity doubling requires an estimated investment of ₹78 crore
- Financing structured through a mix of internal accruals, equity, and bridge loans
- New assemblies plant will process 70% to 75% of total hose and braid output
Strategic Momentum and Market Guidance
This ₹202 crore investment represents approximately 26.8% of Aeroflex’s trailing twelve-month revenue of ₹752.35 crore. The move aligns with management's July 2026 revenue guidance targeting 35% growth for FY27 and blended EBITDA margins of 24% to 25%. The company has been on a steady expansion path, having previously increased liquid cooling skid assembly capacity to 9,000 units earlier in 2026.
With the order book for liquid cooling skids standing at 2,100 units as of July 2026, the additional capacity positions the firm to capitalize on sustained demand for enterprise IT and digital infrastructure.
| Date | Announcement | Amount |
|---|---|---|
| 27 Jul 2026 | Expansion of liquid cooling skid assembly capacity to 9,000 units p.a. (targeting 15,000 units by Q3 FY27) and planned hose capacity enhancement to 20 million meters p.a.Source: BSE filing | ₹102.00 Cr |
| 13 May 2026 | Addition of 2 robotic welding lines and planned setup of an automated welding station and annealing plant by December 2026Source: NSE filing | – |
| 01 Apr 2026 | Capacity expansion of data center liquid cooling skid assembly line to 6,000 units per annumSource: investorfeed.in | – |
| 18 Dec 2025 | Fund allocation and preferential issue for capex into liquid cooling skids facility and robotic automationSource: waya-cont.s3.ap-south-1.amazonaws.com | ₹54.99 Cr |
| 18 Oct 2025 | Strategic capex investment and diversification plan into Dev Information Technology Limited for enterprise IT and digital infrastructureSource: BSE filing | ₹85.00 Cr |
| 29 Jan 2025 | Commercial production and capacity ramp-up of Phase I metal bellows plant (120,000 pieces p.a.) and miniature bellows line (60,000 pieces p.a.)Source: stockscans.in | – |
What to watch next
- Completion of the remaining 3,000 pieces per annum Liquid Cooling capacity by December 2026
- Commissioning of the automated welding station and industrial annealing plant by December 31, 2026
- Updates on phased investment milestones for the new assemblies plant during FY27 earnings calls
| Share price | ₹134.61 |
|---|---|
| Market capitalisation | ₹1,523.30 Cr |
| Revenue (annual) | ₹697.83 Cr |
| Net profit (annual) | ₹64.22 Cr |
| Revenue (latest quarter) | ₹189.00 Cr-5.30% vs previous quarter |
| Net profit (latest quarter) | ₹96.63 Cr+302.15% vs previous quarter |
| P/E (TTM) | 10.11×Sector 18.01× |
| Promoter holding | 52.45%+0.15% QoQ |
| FII holding | 0.73%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Aeroflex Enterprises Limited announcing the capacity enhancement and expansion plans of its material subsidiary. Market figures from a third-party data provider.
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